Key Highlights

● Net sales rose 5.2% to $11.29 billion, with same-store sales up 3.5%.

● Diluted EPS was $2.48, including about $0.25 from tariff refunds.

● Fiscal 2026 diluted EPS guidance rose to $7.80–$8.00 from $7.20–$7.45.

● The board declared a quarterly dividend of $0.59 per share.

Dollar General Corporation (NYSE:DG) operates small-box discount stores across the United States and Mexico, ending its second quarter of fiscal 2026 with 21,148 stores. On August 27, 2026 the company reported results for the 13 weeks ended July 31, 2026. Net sales rose 5.2% to $11.29 billion, while same-store sales increased 3.5%, made up of a 2.0% rise in customer traffic and a 1.5% rise in average transaction size. Consumables grew 5.0%, seasonal 7.4%, home 4.8% and apparel 4.5%.

Gross margin widened to 32.6% from 31.3%; the company said tariff refunds, after reinvestments, contributed about 81 basis points. Operating profit climbed 29.2% to $769.2 million and net income rose 33.8% to $550.3 million. Diluted earnings per share were $2.48, against $1.86 a year earlier, and included about $0.25 from the tariff refunds.

Cash flow, balance sheet and guidance

Cash generation was less flattering than profit. Over the 26 weeks, operating cash flow was $1.50 billion, compared with $1.81 billion in the prior-year period, while capital expenditure totaled $758 million. Merchandise inventories were $6.6 billion, flat year over year, which meant inventory per store fell 2.7%. Cash and equivalents stood at $1.59 billion.

Management raised its fiscal 2026 guidance: net sales growth of roughly 4.0% to 4.3%, same-store sales growth of about 2.5% to 2.9%, and diluted earnings per share of approximately $7.80 to $8.00, up from $7.20 to $7.45 and including the $0.25 refund benefit. The company does not expect a material tariff-refund impact in the second half. Planned capital expenditure of $1.4 billion to $1.5 billion is unchanged, supporting about 4,730 projects, including roughly 450 new US stores and around 4,250 remodels. These figures are management guidance, not outcomes.

Dividend and shareholder returns

The board declared a quarterly cash dividend of $0.59 per share on August 26, 2026, payable on or before October 20, 2026 to shareholders of record on October 6, 2026. Annualized, that would be $2.36. Against guided earnings per share of $7.80 to $8.00, that equates to a payout of about 30%, and the quarterly payment equals roughly 24% of second-quarter diluted earnings. Dollar General also plans to repurchase up to $700 million of shares in the second half of fiscal 2026, with $1.4 billion of authorization remaining at quarter-end. Because the planned repurchases and dividends sit alongside $1.4 billion to $1.5 billion of capital spending, operating cash flow will matter to how comfortably all three are funded.

Sector and index context

Dollar General is a constituent of the S&P 500, classified within consumer staples merchandise retail and has been since December 2012. Market coverage on August 27, 2026 reported that Dollar General and Dollar Tree (NASDAQ:DLTR) both surpassed quarterly sales estimates, with lower-priced essentials drawing shoppers at a time of economic uncertainty and tariff refunds providing an earnings boost. That backdrop is consistent with the company's traffic gain of 2.0%.

Refund Effects and Inventory per Store

First, the tariff refunds flattered both margin and earnings in the second quarter, and management expects no material effect in the second half, so year-over-year comparisons may look different. Second, the 2.7% fall in inventory per store and weaker operating cash flow suggest working capital and execution deserve attention as the remodel program, including about 2,000 Project Renovate and 2,250 Project Elevate projects, proceeds. Third, 66 stores closed in the first half alongside 321 openings.